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BMD Holdings writes to China EXIM Bank

BMD Holdings Ltd, the developer of Baha Mar, April 15 sent a letter to the China EXIM Bank appointed receivers of Baha Mar regarding the Baha Mar sales process. Read the letter here. 

Source:
Date:
Updated:
BMD Holdings, LTD
Monday, April 18, 2016
Monday, April 18, 2016

NASSAU, Bahamas, April 15, 2016 /PRNewswire/ — BMD Holdings, LTD, the developer of Baha Mar, today sent the following letter to the China EXIM Bank appointed receivers of Baha Mar regarding the Baha Mar sales process.

The full text of the letter follows:

15 April 2016

BY E-MAIL

Messrs. Raymond Winder, Deloitte & Touche, Bahamas
Darach Haughey, Deloitte Touche Tohmatsu, Hong Kong
Lai Kar Yan, Deloitte Touche Tohmatsu, Hong Kong
Joint Receiver-Managers of Baha Mar Ltd. et al.
West Bay Street
P. O. Box CB-10988
Nassau, The Bahamas

Re: Baha Mar Ltd. (In receivership and In Provisional Liquidation)

Dear Messrs. Winder and Haughey,

We read your comments in the press today about our offer with great interest, although we cannot help but wonder why you or CEXIM did not at least also communicate with us directly.

Please be assured that we are not laboring under any impression that we will be given an advantage over any other investor who bids to buy the project, and rather feel that we may be disadvantaged over any other investor given that your response to our previous offers – made well before any official sale process was launched – was merely that they were unacceptable, with no explanation or further engagement. Was the court (or the joint provisional liquidators) informed that there was a standing offer, from us or any other party, at the time that the Receivers sought consent for the sale from the court?

Notwithstanding various public statements made in recent weeks referencing a court approved sales process, the Receivers (or for that matter the joint provisional liquidators who you say approved the sale process) have not revealed what the Supreme Court order provides and have not outlined the process. You say in the articles that all offers must come through the Receivers at the appropriate time, and that you will assess those bids and provide the best offer. We have previously inquired about the procedure to make a bid and associated timelines, only to be told that information is not currently available. Yet your comments in today’s paper make repeated references to what the sales process will not allow, i.e. our offer, without providing any concrete information. Of what benefit to the stakeholders is it to continue to conceal this information, and what possible harm could it do to reveal it given the importance of this project to the country and the number of Bahamians so directly affected by its outcome? Would you not think that potential bidders for this multi-billion dollar asset are entitled to understand the sales process?

We applaud your statement that the Receivers are duty bound to seek the best possible price for the asset for the benefit of the unsecured creditors, but first, a sales process that is opaque at best is not designed to achieve the highest price from a broad spectrum of investors, and second, we are unclear what the Receivers are actually doing to maximize value. For example, have the Receivers taken active steps to further the UK litigation against CSCEC under the first completion guarantee to Baha Mar Ltd., or pursued the remedies against CSCEC under the second completion guarantee to CEXIM, or conducted further investigation into potential claims against any number of CSCEC subsidiaries for their misrepresentations to and failure to inform Baha Mar about their ability to complete the project?

With optimism that this letter will not also have been written in vain, I am

Very truly yours,

Whitney Thier

cc: Alastair Beveridge, AlixPartners Services UK
Nicholas Cropper, AlixPartners Services UK
Edmund Rahming

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